CarGurus (CARG 32.30, +2.48) has surged 8.3% in response to better than expected results and upbeat guidance.
CarGurus operates an online portal that allows users to find new and used cars, estimate the value of their vehicles, and list vehicles for sale. The company reported above-consensus third quarter earnings of $0.02 per share on a 56.3% year-over-year increase in revenue to $83.00 million, which also exceeded expectations.
Marketplace subscription revenue increased 59.0% year-over-year to $73.90 million while advertising and other revenue grew 36.0% to $9.10 million.
The company ended the quarter with 26,553 total paying dealers, which represented year-over-year growth of 37.0%. Total paying dealers in the U.S. increased 29.5% to 24,313 while international dealer count increased 258.0% to 2,240.
Average annual revenue per subscribing dealer increased 16.0% year-over-year to $11,526. International revenue grew 271.0% to $2.60 million.
Website traffic in the U.S. improved with the average monthly user count increasing 24.0% year-over-year to 26.0 million. International average monthly user count grew 55.0% to 2.60 million.
Looking ahead, the company expects that fourth quarter earnings will be between $0.01 and $0.02 per share on revenue between $85 million and $86 million. The company's earnings guidance range is in-line with market expectations while the company's revenue outlook is better than the market expects.